Spaceman Spliff

NEW YORK -- Hawaiian Holdings Inc. said Wednesday it has settled a lawsuit against Mesa Air Group Inc. for a cash payment of $52.5 million. Hawaiian had accused Mesa of using proprietary information, obtained while Hawaiian was in bankruptcy proceedings and seeking investors, to help its subsidiary go! airlines to compete in the Hawaiian market. In addition to the settlement, Mesa will also withdraw its appeal of an $80 million judgment awarded against Mesa by the U.S. bankruptcy court. In a statement, Mesa Air said the settlement doesn't restrict go!'s ability to continue services in the Hawaiian inter-island market. Shares of Mesa jumped 18% to 65 cents a share while Hawaiian shares rose 10.8% to $8.75.

HercDriver130

they still have 100 million in bonds which can be called due on 28 June.... stop gap measure at most.

paxhauler85

That's $28.5 million in cash we now have, enough to sustain us for a shoirt time. Keep in mind, he could convince some of the creditors to continue to operate with that debt.

Also, we'll have the result of the Delta settlement by June as well. This could be more $.

Trust me, I hate JO with every fiber of my body; I'm just playing the devils advocate.

mach946

I see alot of wishful thinking about MESA's demise. The whole industry is hurting. With regard to the bond issue. IM sure MESA will convince the holders of such bonds to stand by a little longer while they recover. The Bond holders will agree rather than see MESA just go under, and they get nothing.

MESA is going to pull out or get bought out. Thos are the only viable alternatives.

andy171773

Don't you need to have a certain amount of cash on hand to operate as a 121 carrier...and if you don't have it the FAA can pull your operating cert?

__________________
If you don't like your job, i'll take it!

paxhauler85

No. How do you think Delta/United/every other legacy spent years in bankruptcy?

Even so, now we have $28.5 mill that we didn't have 3 days ago.

viper548

The stock would have to go back up above $10 to get rid of the bond payment. I don't know about you but if I have something that's worth less than a dollar and have a chance to sell it for $10, I'm taking it.

HercDriver130

The wishful thinking is that bondholders will sit idly by while there paper becomes worthless. As a bondholder they are secured creditors...... forcing Mesa into BK would probably insure them something instead of nothing....

mach946

I dont recall wishing the bond holders sitting idly by. If however MESA chooses the Bankruptcy route,the Bond holders will sit by and wait like all the other creditors. IF and I say IF MESA can convince the bond holders that it is in there best interest to hold off and get all of theire money as opposed to forcing Bankrupcty, and a getting a little, they will do it.

MESA is not going anywhere. They will pull out of this and continue to wreak havoc. As I stated before. The best thing is to buy MESA and move on.

blastoff

The Legacies had pull with creditors. Look at the majors that won't be able to operate in bankruptcy (Aloha, ATA, Champion). I wouldn't put money on MAG doing any better.